The US Secret Service
is working with stablecoin issuer Circle to recover funds stolen in the $6.3
billion security breach at Binance. The effort also involves the FBI and
cryptocurrency industry firms.
London’s trading industry is coming home!
Crypto Briefing
reported that the Secret Service confirmed its cooperation with Circle on
October 30, a day after the breach. Reuters separately reported, citing a
person familiar with the matter, that Binance is working with both the FBI and
the Secret Service.
FBI Coordinates Binance Hack
Investigation
The FBI said it was
aware of the incident and was working with public- and private-sector partners
to assess its impact and coordinate investigative steps.
Circle has frozen more
than $800 million in USDC linked to the breach, according to its CEO, Jeremy
Allaire, who said the action was taken in coordination with law enforcement.
Tether has also frozen nearly $1.57 billion in related USDT, according to CEO
Paolo Ardoino.
JUST IN: 🇺🇸 US Secret Service is working with Circle to identify, freeze, and recover funds stolen from Binance. https://t.co/v8kGqYRh5r
— Watcher.Guru (@WatcherGuru) October 30, 2026
The freezes by the two
stablecoin issuers total more than $2.37 billion. Binance has put the total
value of assets frozen by industry partners at around $3 billion, including
actions by other firms.
Circle and Tether can
freeze their stablecoins at specific blockchain addresses, allowing them to
restrict transfers linked to the incident. However, frozen assets have not
necessarily been recovered or returned to affected users.
TRM, A U.S.-based blockchain intelligence firm, attributed the attack to TraderTraitor, which it described as North Korea’s elite hacking unit. “We make this judgment with high confidence,” the firm said in a post on its website Thursday. https://t.co/jQtTVPVJGQ
— NBC 6 South Florida (@nbc6) October 30, 2026
TRM Attributes Binance Attack to “North
Korea”
Separately, blockchain
intelligence firm TRM Labs attributed the attack to TraderTraitor, a North
Korean hacking group, with “high confidence”. TRM said its assessment was based
on on-chain and off-chain intelligence. The firm is tracking the funds and alerting
industry partners through its Beacon Network.
CFTC Cites Binance Hack in Registration
Push
Separately, CFTC
Chairman Michael Selig cited the Binance breach as support for a proposed
voluntary registration framework for offshore cryptocurrency exchanges serving
US retail traders. Under the plan, participating platforms would be required to
meet US cybersecurity and customer protection standards. Selig said broader
federal registration would require congressional action. The CFTC is targeting
December 14, 2026, for the proposed rulemaking.
This article was written by Tareq Sikder at www.financemagnates.com.
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